CASH FUNDS PERFORMANCE
The RBA’s overnight cash rate target was unchanged at 4.10% in July. 3-month BBSW finished the month 9bps lower at 4.26% while 6-month BBSW lost 6bps to 4.64%. Expectations in the cash futures market moved to reflect a lower likelihood of another rate increase in either 2023 or 2024. At the end of the month, contracts implied the actual cash rate would rise from 4.07% at the end of July to an average of 4.265% in July 2024.
The benchmark Bloomberg AusBond Bank Bill index returned 0.37% over the month and 3.15% over the 12 months to the end of July.
| AUSTRALIAN CASH FUNDS | 1m (%) | 3m (%) | 1y (%) | 3y (%) | 5y (%) |
|---|---|---|---|---|---|
| Adelaide Cash Management Trust | 0.21 | 0.61 | 1.51 | 0.57 | 0.50 |
| BT Premium Cash | 0.34 | 0.99 | 3.15 | 1.11 | 1.13 |
| IOOF Cash Management Trust | 0.37 | 0.99 | 3.23 | 1.17 | 1.31 |
| Sandhurst Cash Common Fund | 0.19 | 0.55 | 1.36 | 0.47 | 0.48 |
| UBS Cash | 0.39 | 0.93 | 3.25 | 1.14 | 1.20 |
ENHANCED CASH FUNDS PERFORMANCE
The Smarter Money Active Cash Fund produced a return of 0.79% in July, thus making it the month’s highest-returning enhanced cash fund in the survey for a second consecutive month. Likewise, the Mutual Income Fund was next with return of 0.75%. The Antares Income Fund and MLC’s Wholesale Horizon 1 Bond Portfolio Fund shared third place after they both produced returns of 0.66%.
The returns of all four funds easily outperformed the 0.37% return produced by the Bloomberg AusBond Bank Bill Index in July. All four also exceeded the 0.46% returned by the AusBond FRN Index.
In terms of performance over the twelve months to the end of July, Mutual’s Income Fund retained its title as the highest performing fund by producing a return of 5.76% for the period. The Antares Income Fund was next with a return of 5.20% while Perpetual’s High Grade Treasury Fund was ranked third with a return of 4.98%.
The Bloomberg AusBond Bank Bill and FRN indices returned 3.15% and 4.26% respectively over the 12-month period to the end of July. The above-mentioned funds all outperformed the Bank Bill Index and the FRN Index over this period.
| AUSTRALIAN ENHANCED CASH FUNDS | ASX mFund | 1m (%) | 3m (%) | 1y (%) | 3y (%) | 5y (%) |
|---|---|---|---|---|---|---|
| AMP Capital Managed Treasury | 0.41 | 1.08 | 3.44 | 1.22 | 1.33 | |
| Antares Income Fund | ANT01 | 0.66 | 1.67 | 5.20 | 2.12 | 2.22 |
| Australian Ethical Cash Trust | 0.45 | 1.00 | 3.46 | 1.18 | 1.27 | |
| BT Wholesale Enhanced Cash | 0.45 | 1.23 | 3.99 | 1.65 | 1.82 | |
| Dimensional Short Term Fixed Interest | 0.45 | 0.78 | 2.47 | 0.53 | 0.98 | |
| Fiducian Capital Safe | 0.39 | 0.99 | 3.31 | 1.11 | 1.14 | |
| IOOF MultiMix Cash Enhanced Trust | 0.44 | 1.22 | 3.86 | 1.31 | 1.52 | |
| Legg Mason Western Asset Conservative Income Fund | 0.43 | 1.14 | 3.99 | 1.41 | 1.51 | |
| Mutual Income Fund | 0.75 | 1.78 | 5.76 | 2.19 | 2.24 | |
| MLC Wholesale Horizon 1 Bond Portfolio | 0.66 | 1.25 | 3.07 | 0.53 | 0.97 | |
| Henderson Cash Enhanced Trust | 0.47 | 1.20 | 4.04 | 1.33 | 1.64 | |
| Perpetual High Grade Treasury | 0.52 | 1.57 | 4.98 | 2.06 | 2.25 | |
| Prime Value Enhanced Income Fund | 0.38 | 0.23 | 3.55 | 1.57 | 1.58 | |
| Realm Short Term Income Fund | RLM02 | 0.51 | 1.49 | 4.85 | 2.56 | 2.63 |
| Sandhurst Strategic Income A | 0.37 | 1.16 | 3.74 | 1.45 | 1.52 | |
| Smarter Money Active Cash Fund | 0.79 | 1.80 | 4.62 | 1.60 | 1.82 | |
| UBS Cash Plus | 0.47 | 1.08 | 3.78 | 1.31 | 1.51 | |
| Vanguard Cash Reserve | 0.39 | 1.02 | 3.23 | 1.08 | 1.16 | |
| Vanguard Cash Plus | 0.53 | 0.73 | 3.11 | 0.92 | 1.30 | |
| Bloomberg AusBond Bank 0+Y TR AUD | 0.37 | 0.97 | 3.15 | 1.13 | 1.20 |
*End of July 2023. Return in AUD after fees.